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Press Release -- September 4th, 2025
Source: Ciena
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Ciena Reports Fiscal Third Quarter 2025 Financial Results

HANOVER, Md.–(BUSINESS WIRE)–Sep. 4, 2025– Ciena® Corporation (NYSE: CIEN), a networking systems, services and software company, today announced unaudited financial results for its fiscal third quarter ended August 2, 2025.

  • Q3 Revenue: $1.22 billion
  • Q3 Net Income per Share: $0.35 GAAP; $0.67 adjusted (non-GAAP)
  • Share Repurchases: Repurchased approximately 1.0 million shares of common stock for an aggregate price of $81.8 million during the quarter

“We delivered another strong quarterly performance that reflects our leadership in high-speed connectivity and ongoing accelerated customer demand as the network becomes fundamental to the underpinning, growth, and monetization of AI,” said Gary Smith, president and CEO, Ciena. “With visibility well into fiscal year 2026, we are confident in the continued momentum of our business and remain focused on further expanding our operating leverage as we continue to grow.”

For the fiscal third quarter 2025, Ciena reported revenue of $1.22 billion as compared to $942.3 million for the fiscal third quarter 2024.

Ciena’s GAAP net income for the fiscal third quarter 2025 was $50.3 million, or $0.35 per diluted common share, which compares to a GAAP net income of $14.2 million, or $0.10 per diluted common share, for the fiscal third quarter 2024.

Ciena’s adjusted (non-GAAP) net income for the fiscal third quarter 2025 was $96.2 million, or $0.67 per diluted common share, which compares to an adjusted (non-GAAP) net income of $50.8 million, or $0.35 per diluted common share, for the fiscal third quarter 2024.

Fiscal Third Quarter 2025 Performance Summary

The tables below (in millions, except percentage data) provide comparisons of certain quarterly results to the prior year. Appendices A and B set forth reconciliations between the GAAP and adjusted (non-GAAP) measures contained in this release.

GAAP  Results (unaudited)

Q3

Q3

Period Change

FY 2025

FY 2024

Y-T-Y*

Revenue

$

     1,219.4

$

         942.3

29.4

%

Gross margin

41.3

%

42.9

%

(1.6

)%

Operating expense

$

         429.5

$

         377.2

13.9

%

Operating margin

6.1

%

2.9

%

3.2

%

Non-GAAP  Results (unaudited)

Q3

Q3

Period Change

FY 2025

FY 2024

Y-T-Y*

Revenue

$

     1,219.4

$

         942.3

29.4

%

Adj. gross margin

41.9

%

43.7

%

(1.8

)%

Adj. operating expense

$

         380.2

$

         336.0

13.2

%

Adj. operating margin

10.7

%

8.0

%

2.7

%

Adj. EBITDA

$

         158.0

$

           98.5

60.4

%

* Denotes % change, or in the case of margin, absolute change

Revenue by Segment (unaudited)

Q3 FY 2025

Q3 FY 2024

Revenue

%**

Revenue

%**

Networking Platforms

Optical Networking

$

815.5

66.9

$

606.8

64.4

Routing and Switching

125.9

10.3

92.7

9.8

Total Networking Platforms

941.4

77.2

699.5

74.2

Platform Software and Services

90.0

7.4

83.2

8.9

Blue Planet Automation Software and Services

27.8

2.3

25.8

2.7

Global Services

Maintenance Support and Training

80.7

6.6

74.4

7.9

Installation and Deployment

65.9

5.4

46.5

4.9

Consulting and Network Design

13.6

1.1

12.9

1.4

Total Global Services

160.2

13.1

133.8

14.2

Total

$

1,219.4

100.0

$

942.3

100.0

** Denotes % of total revenue

Additional Performance Metrics for Fiscal Third Quarter 2025

Revenue by Geographic Region (unaudited)

Q3 FY 2025

Q3 FY 2024

Revenue

% **

Revenue

% **

Americas

$

923.6

75.7

$

718.6

76.3

Europe, Middle East and Africa

186.0

15.3

135.0

14.3

Asia Pacific

109.8

9.0

88.7

9.4

Total

$

1,219.4

100.0

$

942.3

100.0

** Denotes % of total revenue

  • Two customers represented 10%-plus of revenue combining for a total of 28.8% of revenue
  • Cash and investments totaled $1.39 billion
  • Cash flow from operations totaled $174.3 million
  • Average days’ sales outstanding (DSOs) were 88
  • Accounts receivable, net balance was $1.03 billion
  • Unbilled contract asset, net balance was $164.3 million
  • Inventories totaled $860.4 million, including:
    • Raw materials: $642.7 million
    • Work in process: $35.6 million
    • Finished goods: $261.8 million
    • Deferred cost of sales: $41.8 million
    • Reserve for excess and obsolescence: $(121.5) million
  • Product inventory turns were 2.7
  • Headcount totaled 9,213

Business Outlook for Fiscal Fourth Quarter 2025

Statements relating to business outlook are forward-looking in nature and actual results may differ materially. These statements should be read in the context of the “Economic considerations and assumptions” in our accompanying Earnings Presentation, and each of the “Forward-Looking Statements” and “Reconciliation of Adjusted (Non- GAAP) Measurements” found in the Notes to Investors below.

Ciena expects fiscal fourth quarter 2025 financial performance to include:

  • Revenue in the range of $1.24 billion to $1.32 billion
  • Adjusted (non-GAAP) gross margin between 42% to 43%
  • Adjusted (non-GAAP) operating expense in a range of $390 million to $400 million

Supplemental Materials and Live Web Broadcast of Unaudited Fiscal Third Quarter 2025 Results

Today, Thursday, September 4, 2025, in conjunction with this announcement, Ciena has posted to the Quarterly Results page of the Investor Relations section of its website certain related supporting materials for its unaudited fiscal third quarter 2025 results.

Ciena’s management will also host a discussion today with investors and financial analysts that will include the Company’s outlook. The live audio web broadcast beginning at 8:30 a.m. Eastern will be accessible via www.ciena.com. An archived replay of the live broadcast will be available shortly following its conclusion on the Investor Relations page of Ciena’s website.

Notes to Investors

Forward-Looking Statements. You are encouraged to review the Investors section of our website, where we routinely post press releases, Securities and Exchange Commission (“SEC”) filings, recent news, financial results, supplemental financial information, and other announcements. From time to time we exclusively post material information to this website along with other disclosure channels that we use. This press release contains certain forward-looking statements that involve risks and uncertainties. These statements are based on current expectations, forecasts, assumptions and other information available to the Company as of the date hereof. Forward-looking statements include statements regarding Ciena’s expectations, beliefs, intentions or strategies regarding the future and can be identified by forward-looking words such as “anticipate,” “believe,” “could,” “estimate,” “expect,” “intend,” “may,” “should,” “will,” and “would” or similar words. Forward-looking statements in this release include: “We delivered another strong quarterly performance that reflects our leadership in high-speed connectivity and ongoing accelerated customer demand as the network becomes fundamental to the underpinning, growth, and monetization of AI. With visibility well into fiscal year 2026, we are confident in the continued momentum of our business and remain focused on further expanding our operating leverage as we continue to grow.”

Ciena’s actual results, performance or events may differ materially from these forward-looking statements made or implied due to a number of risks and uncertainties relating to Ciena’s business, including: the effect of broader economic and market conditions on our customers, their spending and their businesses and markets; our ability to execute our business and growth strategies; the impact of macroeconomic conditions and global supply chain constraints or disruptions including increased supply costs and lead times; the impact of the introduction of new technologies by us or our competitors; the timing and size of customer orders, their delivery dates and our ability to recognize revenue relating to such sales; the level of competitive pressure we encounter; the product, customer and geographic mix of sales within the period; changes in foreign currency exchange rates; factors beyond our control such as natural disasters, climate change, acts of war or terrorism, geopolitical tensions or events, including but not limited to the ongoing conflicts between Ukraine and Russia, and Israel and Hamas, and public health emergencies or epidemics and pandemics; changes in tax or trade regulations, including the imposition of tariffs, duties or efforts to withdraw from or materially modify international trade agreements; cyberattacks, data breaches or other security incidents involving our enterprise network environment or our products; regulatory changes, litigation involving our intellectual property or government investigations; and the other risk factors disclosed in Ciena’s periodic reports filed with the Securities and Exchange Commission (SEC) including its Annual Report on Form 10-K filed with the SEC on December 20, 2024 and included in its Quarterly Report on Form 10-Q for the third quarter of fiscal 2025 to be filed with the SEC. Ciena assumes no obligation to update any forward-looking information included in this press release.

Non-GAAP Presentation of Quarterly and Annual Results. This release includes non-GAAP measures of Ciena’s gross profit, operating expense, income from operations, earnings before interest, tax, depreciation and amortization (EBITDA), Adjusted EBITDA, and measures of net income and net income per share. In evaluating the operating performance of Ciena’s business, management excludes certain charges and credits that are required by GAAP. These items share one or more of the following characteristics: they are unusual and Ciena does not expect them to recur in the ordinary course of its business; they do not involve the expenditure of cash; they are unrelated to the ongoing operation of the business in the ordinary course; or their magnitude and timing is largely outside of Ciena’s control. Management believes that the non-GAAP measures below provide management and investors useful information and meaningful insight to the operating performance of the business. The presentation of these non-GAAP financial measures should be considered in addition to Ciena’s GAAP results and these measures are not intended to be a substitute for the financial information prepared and presented in accordance with GAAP. Ciena’s non-GAAP measures and the related adjustments may differ from non-GAAP measures used by other companies and should only be used to evaluate Ciena’s results of operations in conjunction with our corresponding GAAP results. To the extent not previously disclosed in a prior Ciena financial results press release, Appendices A and B to this press release set forth a complete GAAP to non-GAAP reconciliation of the non-GAAP measures contained in this release.

With respect to Ciena’s expectations under “Business Outlook for Fiscal Fourth Quarter 2025” above, Ciena is not able to provide a quantitative reconciliation of the adjusted (non-GAAP) gross margin and adjusted (non-GAAP) operating expense guidance measures to the corresponding gross profit and gross profit percentage, and operating expense GAAP measures without unreasonable efforts. Ciena cannot provide meaningful estimates of the non-recurring charges and credits excluded from these non-GAAP measures due to the forward-looking nature of these estimates and their inherent variability and uncertainty. For the same reasons, Ciena is unable to address the probable significance of the unavailable information.

About Ciena. Ciena (NYSE: CIEN) is a global leader in networking systems, services, and software. We build the most adaptive networks in the industry, enabling customers to anticipate and meet ever-increasing digital demands. For three-plus decades, Ciena has brought our humanity to our relentless pursuit of innovation. Prioritizing collaborative relationships with our customers, partners, and communities, we create flexible, open, and sustainable networks that better serve all users—today and into the future. For updates on Ciena, follow us on LinkedInX, the Ciena Insights blog, or visit www.ciena.com.

CIENA CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(in thousands, except per share data)

(unaudited)

Quarter Ended

Nine Months Ended

August 2,

July 27,

August 2,

July 27,

2025

2024

2025

2024

Revenue:

Products

$

976,801

$

729,503

$

2,730,167

$

2,266,596

Services

242,584

212,805

687,356

624,247

Total revenue

1,219,385

942,308

3,417,523

2,890,843

Cost of goods sold:

Products

580,028

433,533

1,620,816

1,315,737

Services

136,278

104,830

368,969

315,538

Total cost of goods sold

716,306

538,363

1,989,785

1,631,275

Gross profit

503,079

403,945

1,427,738

1,259,568

Operating expenses:

Research and development

211,898

188,888

619,429

571,537

Selling and marketing

148,724

121,520

424,911

373,749

General and administrative

60,596

58,248

171,450

162,504

Significant asset impairments and restructuring costs

1,770

1,361

5,262

21,987

Amortization of intangible assets

6,556

7,185

19,646

22,384

Total operating expenses

429,544

377,202

1,240,698

1,152,161

Income from operations

73,535

26,743

187,040

107,407

Interest and other income, net

15,090

14,013

34,539

36,460

Interest expense

(22,806

)

(24,401

)

(67,421

)

(72,038

)

Loss on extinguishment and modification of debt

(729

)

Income before income taxes

65,819

16,355

153,429

71,829

Provision for income taxes

15,511

2,125

49,580

24,901

Net income

$

50,308

$

14,230

$

103,849

$

46,928

Net Income per Common Share

Basic net income per common share

$

0.35

$

0.10

$

0.73

$

0.32

Diluted net income per potential common share

$

0.35

$

0.10

$

0.72

$

0.32

Weighted average basic common shares outstanding

141,846

144,394

142,437

144,876

Weighted average dilutive potential common shares outstanding1

144,499

145,361

145,158

145,795

1 Weighted average dilutive potential common shares outstanding used in calculating GAAP diluted net income per potential common share includes the following number of shares underlying certain stock option and stock unit awards: (i) 2.7 million for both the third quarter and first nine months of fiscal 2025; and (ii) 1.0 million and 0.9 million for the third quarter and first nine months of fiscal 2024, respectively.

CIENA CORPORATION

CONDENSED CONSOLIDATED BALANCE SHEETS

(in thousands, except share data)

(unaudited)

August 2,
2025

November 2,
2024

ASSETS

Current assets:

Cash and cash equivalents

$

1,055,976

$

934,863

Short-term investments

270,380

316,343

Accounts receivable, net

1,025,563

908,597

Inventories, net

860,403

820,430

Prepaid expenses and other

473,901

564,183

Total current assets

3,686,223

3,544,416

Long-term investments

64,397

80,920

Equipment, building, furniture and fixtures, net

368,348

337,722

Operating right-of-use assets

40,347

27,417

Goodwill

444,828

444,707

Other intangible assets, net

138,673

165,020

Deferred tax asset, net

851,903

886,441

Other long-term assets

154,059

154,694

Total assets

$

5,748,778

$

5,641,337

LIABILITIES AND STOCKHOLDERS’ EQUITY

Current liabilities:

Accounts payable

$

464,684

$

423,401

Accrued liabilities and other short-term obligations

436,312

393,905

Deferred revenue

196,209

156,379

Operating lease liabilities

14,694

14,455

Current portion of long-term debt

11,580

11,700

Total current liabilities

1,123,479

999,840

Long-term deferred revenue

81,057

81,240

Other long-term obligations

195,976

185,938

Long-term operating lease liabilities

34,498

25,107

Long-term debt, net

1,526,467

1,533,074

Total liabilities

2,961,477

2,825,199

Stockholders’ equity:

Preferred stock – par value $0.01; 20,000,000 shares authorized; zero shares issued and outstanding

Common stock – par value $0.01; 290,000,000 shares authorized; 141,342,527 and 142,656,116 shares issued and outstanding

1,413

1,427

Additional paid-in capital

6,020,315

6,154,869

Accumulated other comprehensive loss

(44,829

)

(46,711

)

Accumulated deficit

(3,189,598

)

(3,293,447

)

Total stockholders’ equity

2,787,301

2,816,138

Total liabilities and stockholders’ equity

$

5,748,778

$

5,641,337

CIENA CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(in thousands)

(unaudited)

Nine Months Ended

August 2,

July 27,

2025

2024

Cash flows provided by operating activities:

Net income

$

103,849

$

46,928

Adjustments to reconcile net income to net cash provided by operating activities:

Depreciation of equipment, building, furniture and fixtures, and amortization of leasehold improvements

76,637

68,997

Share-based compensation expense

135,696

115,433

Amortization of intangible assets

26,343

30,675

Deferred taxes

(21,709

)

(19,909

)

Provision for inventory excess and obsolescence

34,185

35,400

Provision for warranty

16,302

14,708

Other

(1,838

)

11,968

Changes in assets and liabilities:

Accounts receivable

(116,887

)

92,421

Inventories

(73,493

)

78,220

Prepaid expenses and other

137,440

(221,823

)

Operating lease right-of-use assets

8,759

8,963

Accounts payable, accruals and other obligations

83,354

(112,352

)

Deferred revenue

38,246

28,833

Short and long-term operating lease liabilities

(11,868

)

(13,290

)

Net cash provided by operating activities

435,016

165,172

Cash flows used in investing activities:

Payments for equipment, furniture, and fixtures

(95,373

)

(53,098

)

Purchases of investments

(191,335

)

(197,303

)

Proceeds from sales and maturities of investments

261,611

114,899

Settlement of foreign currency forward contracts, net

(2,635

)

(362

)

Purchase of equity investments

(21,682

)

Net cash used in investing activities

(27,732

)

(157,546

)

Cash flows used in financing activities:

Proceeds for modification of debt, net

19,175

Cash paid for extinguishment of debt

(19,175

)

Payment of long term debt

(8,685

)

(5,850

)

Payment of debt issuance costs

(12

)

(2,554

)

Payment of finance lease obligations

(3,244

)

(3,004

)

Shares repurchased for tax withholdings on vesting of stock unit awards

(60,043

)

(33,450

)

Repurchases of common stock – repurchase program, net

(250,035

)

(125,816

)

Proceeds from issuance of common stock

35,874

34,292

Net cash used in financing activities

(286,145

)

(136,382

)

Effect of exchange rate changes on cash, cash equivalents and restricted cash

60

1,499

Net increase (decrease) in cash, cash equivalents and restricted cash

121,199

(127,257

)

Cash, cash equivalents and restricted cash at beginning of period

935,026

1,010,786

Cash, cash equivalents and restricted cash at end of period

$

1,056,225

$

883,529

Supplemental disclosure of cash flow information

Cash paid during the period for interest, net

$

68,243

$

64,999

Cash paid during the period for income taxes, net

$

84,898

$

41,736

Operating lease payments

$

13,246

$

14,672

Non-cash investing and financing activities

Purchase of equipment in accounts payable

$

14,819

$

35,316

Repurchase of common stock in accrued liabilities from repurchase program, net

$

2,231

$

1,762

Operating right-of-use assets subject to lease liability

$

21,850

$

5,326

APPENDIX A – Reconciliation of Adjusted (Non- GAAP) Measurements

(in thousands, except per share data) (unaudited)

Quarter Ended

August 2,

July 27,

2025

2024

Gross Profit Reconciliation (GAAP/non-GAAP)

GAAP gross profit

$

503,079

$

403,945

Share-based compensation-products

2,027

1,660

Share-based compensation-services

3,942

3,122

Amortization of intangible assets

2,232

2,764

Total adjustments related to gross profit

8,201

7,546

Adjusted (non-GAAP) gross profit

$

511,280

$

411,491

Adjusted (non-GAAP) gross profit percentage

41.9

%

43.7

%

Operating Expense Reconciliation (GAAP/non-GAAP)

GAAP operating expense

$

429,544

$

377,202

Share-based compensation-research and development

16,749

13,118

Share-based compensation-sales and marketing

13,277

10,315

Share-based compensation-general and administrative

11,008

9,257

Significant asset impairments and restructuring costs

1,770

1,361

Amortization of intangible assets

6,556

7,185

Total adjustments related to operating expense

49,360

41,236

Adjusted (non-GAAP) operating expense

$

380,184

$

335,966

Income from Operations Reconciliation (GAAP/non-GAAP)

GAAP income from operations

$

73,535

$

26,743

Total adjustments related to gross profit

8,201

7,546

Total adjustments related to operating expense

49,360

41,236

Total adjustments related to income from operations

57,561

48,782

Adjusted (non-GAAP) income from operations

$

131,096

$

75,525

Adjusted (non-GAAP) operating margin percentage

10.7

%

8.0

%

Net Income Reconciliation (GAAP/non-GAAP)

GAAP net income

$

50,308

$

14,230

Exclude GAAP provision for income taxes

15,511

2,125

Income before income taxes

65,819

16,355

Total adjustments related to income from operations

57,561

48,782

Adjusted income before income taxes

123,380

65,137

Non-GAAP tax provision on adjusted income before income taxes

27,144

14,330

Adjusted (non-GAAP) net income

$

96,236

$

50,807

Weighted average basic common shares outstanding

141,846

144,394

Weighted average dilutive potential common shares outstanding 1

144,499

145,361

Net Income per Common Share

GAAP diluted net income per potential common share

$

0.35

$

0.10

Adjusted (non-GAAP) diluted net income per potential common share

$

0.67

$

0.35

Weighted average dilutive potential common shares outstanding used in calculating Adjusted (non-GAAP) diluted net income per potential common share includes the following number of shares underlying certain stock option and stock unit awards: (i) 2.7 million for the third quarter of fiscal 2025; and (ii) 1.0 million for the third quarter of fiscal 2024.

APPENDIX B – Calculation of EBITDA and Adjusted EBITDA

(in thousands) (unaudited)

Quarter Ended

August 2,

July 27,

2025

2024

Earnings Before Interest, Tax, Depreciation and Amortization (EBITDA)

Net income (GAAP)

$

50,308

$

14,230

Add: Interest expense

22,806

24,401

Less: Interest and other income, net

15,090

14,013

Add: Provision for income taxes

15,511

2,125

Add: Depreciation of equipment, building, furniture and fixtures, and amortization of leasehold improvements

26,866

22,981

Add: Amortization of intangible assets

8,788

9,949

EBITDA

$

109,189

$

59,673

Add: Share-based compensation expense

47,003

37,472

Add: Significant asset impairments and restructuring costs

1,770

1,361

Adjusted EBITDA

$

157,962

$

98,506

* * *

The adjusted (non-GAAP) measures above and their reconciliation to Ciena’s GAAP results for the periods presented reflect adjustments relating to the following items:

  • Share-based compensation – a non-cash expense incurred in accordance with share-based compensation accounting guidance.
  • Significant asset impairments and restructuring costs – costs incurred as a result of restructuring activities taken to align resources with perceived market opportunities, the redesign of business processes and restructuring certain real estate facilities.
  • Amortization of intangible assets – a non-cash expense arising from the acquisition of intangible assets, principally developed technologies and customer-related intangibles, that Ciena is required to amortize over an expected useful life.
  • Non-GAAP tax provision – consists of current and deferred income tax expense commensurate with the level of adjusted income before income taxes and utilizes a current, blended U.S. and foreign statutory annual tax rate of 22.0% for both the third quarter of fiscal 2025 and fiscal 2024. This rate may be subject to change in the future, including as a result of changes in tax policy or tax strategy.

Press Contact: Jamie Moody
Ciena Corporation
+1 (214) 995-8035
pr@ciena.com

Investor Contact: Gregg Lampf
Ciena Corporation
+1 (410) 694-5700
ir@ciena.com

Source: Ciena Corporation

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